Paramount Skydance Faces State Attorneys General in Warner Bros. Deal
A legal showdown is brewing as Paramount Skydance Corp. and a coalition of state attorneys general, who are opposing its $110 billion acquisition of Warner Bros. Discovery Inc., have been directed to schedule meetings for negotiation. This order was issued following a brief court notice on Friday afternoon.
While specific dates for the negotiations are yet to be determined, the involved parties are expected to meet over two consecutive days in late October. The Writers Guild of America West, which has filed its own lawsuit to halt the merger, will also join these discussions. U.S. Magistrate Judge Thomas Hixson will oversee the negotiations in San Francisco.
A spokesperson for California Attorney General Rob Bonta emphasized that the order for a court-ordered settlement conference is a routine procedure in significant cases like this one. “It indicates the judge wants both sides to talk, but it doesn’t mean a settlement is imminent,” the spokesperson stated.
This group of states, led by California and alongside the Writers Guild, took legal action in July to stop the merger, arguing that it could hurt competition in the film distribution and cable TV markets, as well as negatively impact opportunities for screenwriters.
If the deal is not finalized by October 1, Paramount will incur late fees of $7 million each day. Additionally, the company has requested the court impose a $1.88 billion bond on the states to cover its costs while awaiting a resolution or trial, which is set for March.
In a statement released Friday, Paramount expressed its willingness to work collaboratively with the plaintiffs to reach a quick resolution, aiming to finalize the deal and bring its competitive advantages to creators and consumers.
On the stock market, shares of Paramount saw an increase of about 2% on Friday, while Warner Bros. experienced a slight decline.
